Important points:
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Bitcoin risks reaching $102,000 again as the upside support looks increasingly weak.
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Our analysis suggests that the bull market could be at risk as a result.
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Gold has hit new all-time highs, and Bitcoin price trends are far behind.
Bitcoin (BTC) selling increased in Wall Street trading on Wednesday as Bitcoin (BTC) price indicators showed little sign of a rebound.
$102,000 is important in BTC price prediction
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is down nearly 2% at the time of writing, hovering around $111,000.
According to CoinGlass data, downside liquidity was taken away earlier in the day and the bulls have yet to reach resistance overhead just below $114,000.
Regarding the current price trend of Bitcoin, trader Roman warned that the $102,000 low seen last week on Binance could reappear.
“Now it’s starting to look like the reversal setup has failed,” he wrote on the 4-hour chart in an X post.
“Again, I have concerns that the wick could be filled up to 102k. Any lower than this would disable this setup, but it probably already has. It looks like there is some integration going on to fill the wick.”
The drop to $102,000 represents a 19% drawdown from Bitcoin’s most recent all-time high, which is common in the current bull market that began in early 2023.
“Bitcoin’s long-term structure still looks good. As long as the $102,000 level persists, Bitcoin will be in a bull market,” added crypto analyst and entrepreneur Ted Pillows.
“I would be concerned if BTC closes the monthly candlestick below the $102,000 support level.”
Meanwhile, fellow trader Crypto Tony said the day’s low of $110,500 is “likely to hold” for some time.
Gold’s all-time high pushes Bitcoin back
As such, Bitcoin has been unable to capitalize on the potential macroeconomic tailwinds currently forming in risk assets.
Related: Bitcoin index shows ‘euphoria’ as $112.5k BTC price pressures new buyers
In a speech on Tuesday, Federal Reserve Chairman Jerome Powell raised expectations for further rate cuts at the October meeting.
This pushed gold to a new high for the day, now above $4,200 per ounce.
“Despite the weekend volatility, the correlation between Bitcoin and gold remains above 0.85, highlighting the synchronized flow between traditional and digital value stores,” trading firm QCP Capital said in its latest “Asia Color” market update.
“While gold continues to set new highs, Bitcoin briefly broke new records just before the weekend. With institutional government bonds accumulating positions and ETF inflows remaining strong ($102.7 million into the BTC ETF and $236.2 million into the ETH ETF yesterday), the stage for another rally may already be forming.”
QCP still questioned whether Bitcoin could maintain its “digital gold” utility in the future.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.